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Experts differ over way to open Asian market to US
WASHINGTON. Oct 30: Two experts differ somewhat over whether the United States should pursue open markets In Asia by slowly building a Pacific free-trade area or by quickly, extending the north American Free Trade Agreement (NAFTA), reports USIS.
Presenting-the first argument at an October 27 confer ence was Fred Bergsten, Chairman of the Eminent Persons Group (EPG) advisory body to the Asia-Pacific Economic Cooperation (APEC) forum.
Bergsten predicted that APEC leaders. Including President Clinton will commit al their November 15 meeting in Jakarta to free trade in the area at a date certain. His EPG report recommends three dates: 2010 for developed. 2015 for Intermediate and 2020 for less-developed'coun-tries
Presenting another argu ment was Paula Stern, a senior follow at the Progressive Policy Institute, a Washington research organization like Bergsten s own Institute for Ini er national Economics.
Uncertain about the worth of goafs so many ye^s distant. Stern said the United Slates should push for faater market gains by extending the US Mexico-Canada NAFTA to any
Asian or Pacific country With Ing to commit to NAFTA’S high trade.'labour and environmental standards.
Bergsten opposed the idea, arguing that such extension
would undermine support for APEC by dividing NAFTA members from non-NAFTA members.
If APEC fails, then we should fall back on NAFTA." Bergsten said.
But Stern argued that quick, demonstrable improvements in US trade relations with Asia was important right now to build a US political constituency for free trade-
If APEC achieves no more tn trade liberalization than the Uruguay Round multilateral trade agreement, she said, then she questions the reason for having it.
Bergsten argued that, pressed by business interests, any trade liberalization under APEC would proceed years ahead of the formal deadlines. as happened in the European Community, the US-Canada Free Trade Agreement and others.
He aid evolutionary trade liberalization in APEC would give enormous competitive gains to US business as rapidly growing Asian economies reduce their trade barriers. That would be true, he said, even if the United States and other developed countries move to free trade on a faster schedule than the group as a whole, be cause US barriers are so rela lively small already.